Buy-to-let mortgage lending fell by 65% in April after the 3% stamp duty surcharge came into force, Council of Mortgage Lenders figures show.
Month-on-month lending also fell by 53% for home-movers, 40% for homeowners and 11% for first-time buyers.
Landlords borrowed £2.5bn in April, a 65% reduction from March and a 7% fall year-on-year.
Month-on-month lending also fell by 53% for home-movers, 40% for homeowners and 11% for first-time buyers.
Paul Smee, director general of the CML, said: “There is a sense of calm after the storm this month, as lending eased back, following the significant rises in activity in March as borrowers looked to beat the second property stamp duty deadline.
“We expect the market to take several months to return to its previous levels after the lending surge.”
Re-mortgage activity bucked the trend by rising by 25% on March and 40% from a year ago.
